#CreatorPad Delinquency in credit card and auto loan payments is sharply rising among wealthy Americans (earning over $150,000 annually). Data from VantageScore and the Federal Reserve Bank of St. Louis indicates a nearly 20% increase in such delinquencies over the last two years, with delinquency rates growing twice as fast in affluent areas.

This trend is linked to the Federal Reserve's high interest rates and the end of pandemic-era student loan deferral programs. The labor market has also slowed, particularly in high-paying sectors, causing some families to face significant income drops. For example, one family's annual income fell by $40,000 after job loss, leading to a $50,000 debt.

This shift threatens the post-pandemic economic model, which relied on spending by high-income earners. Consumer spending is now at its lowest since the pandemic began, with cuts in leisure and travel. Economists warn that this situation makes the economy more vulnerable, as people have less access to credit to manage financial shocks.